The global construction and fit-out industry is grappling with a complex array of cost pressures in 2025. With increased focus on the office, many organizations are seeking to invest in their workspaces to create high quality offices that will encourage employees back to the office and improve their utilization, experience and performance. Understanding the relative cost factors and potential associated outcomes can inform the design and delivery of office fit outs.

While cost profiles vary regionally, Builders Works (from partitions and flooring, to finishes and joinery) accounts for the largest component of fit-out costs in all regions except LATAM.

The second largest cost is M&E services, which is also where there is most variation between regions. M&E can account for between 20% to 45% of costs, due to in combination to climatic demands and local tenant obligations with a building, which vary extensively between countries.

Furniture costs range across regions from 13%-16% of total costs, comparing like for like specification from locally available products. Furniture costs can vary significantly depending on the availability of project specification products, with many organizations increasingly seeking to balance global design standards with greater focus on local sourcing and reducing embodied carbon footprints.

 AV & Technology form a larger component in APAC compared to other regions, reflecting the growing emphasis on technology to support greater efficiencies and hybrid working practices in the region.

Demand for sustainable fit-outs are on the rise, with where 60% of the markets surveyed reported that they had seen an increase in client enquiries for a more sustainable fit-out in the last 12 months. JLL’s Future of Work Survey also highlights investment in sustainability performance is lively to increase in the next five years globally.

Continued demand for Grade A office space, coupled with lack of supply, is also heightening focus on the opportunities of existing office buildings and the value that investing in fit-outs can have for landlords and building owners.

Upgrading M&E services can be an extensive part of a fit-out costs, while furniture costs for re-use and upcycling vary extensively by region, related to how accessible these approaches are.

However, one area that has had less attention, is the opportunities to consider whole-life sustainability and the impact of reinstatement on embodied carbon. With increasing costs for materials, furniture and finishes, forward looking organizations will be considering how alternative reinstatement models could create both cost and carbon savings. Central to the success of these will be collaborative partnerships between landlords and tenants, to identify opportunities for re-use and enhancement of existing fixtures and fittings.